KKR partners Singapore's GIC to float India realty lending firm

Private equity major KKR & Co has floated a non-banking financial company in India that will lend to the real estate sector.

The move will be KKR's second non-banking finance company (NFBC) in India, the firm said in a statement.

KKR also said Singapore's sovereign wealth fund, GIC, has invested in the NBFC.

Ralph Rosenberg, Global Head of KKR Real Estate said: "...We are excited to assist a sector that is still under-built. While many lenders provide debt to this sector, there is a need for solution-oriented, non-dilutive capital for property developers.

"We intend to fill that gap and contribute to the continued development of India's residential and commercial real estate sectors."

Sanjay Nayar, CEO of KKR India, said: "This sector-focused NBFC further enables KKR to provide tailored financing solutions to companies, and adds to our established private equity and lending businesses in India..."

In 2014, KKR initiated the real estate business in India by structuring and participating in three transactions with an aggregate amount of approximately $190m (£125, €160m).

Since rolling out a dedicated real estate platform in 2011, New York-based KKR has committed over $1.8bn of equity to 29 real estate transactions in the US, Europe and Asia.

In private equity, KKR has been active in India since 2006, with total equity investments exceeding $1.5bn.